ITPEC FE Morning October 2022 Question 72
Which of the following is a description of Online-to-Offline in net business?
Explanation
Guiding mobile users from a virtual store to a real store, or back — Online-to-Offline (O2O) links online and physical shopping to lead the customer to a purchase.
Typical O2O measures are coupons sent to a smartphone and redeemed in the shop, store finders and check-ins in an app, or codes in the shop that lead to the online store. The aim is to turn attention in one channel into purchases in the other.
Answer (c)
Why not others:
- •(a) — a free basic service with charges for advanced functions is the freemium model
- •(b) — protecting buyer and seller against goods not delivered or payment not made is escrow, where a third party holds the payment until delivery is confirmed
- •(d) — starting production of the final product only after the order arrives, to build to the customer's specification, is BTO (build to order)
Key rule: O2O is about moving customers between online and offline channels; freemium is a pricing model, escrow a payment safeguard and BTO a production method.
Business Industry · AI-written, may contain errors
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